Practitioner KnowledgeBase

Comprehensive Project Finance Tools, Guides & Definitions

This knowledgebase (curated library) of free guides, educational articles, templates and checklists help finance practitioners, project developers, sponsors and their agents to accelerate and streamline fundraising via our Completion Assurance [Capital Guarantee] Program™ (what makes CAP funding different).

If you are unfamiliar with the advantages of using completion assurance guarantees for project funding, start at the top and work your way through these materials as they gradually become more detailed and technical.  Any resource with a * is more advanced, part of our Practitioner Series.

1. Key resource materials for In3CAP project funding of $25 million or more:  in3inc.com/in3new/RESOURCES
2. Introductory Articles:
   • How to expedite Project Finance using Completion Assurance Guarantees 
   • Deciding if a Completion Assurance Guarantee CAG) has advantages for your situation
   • Guarantee options, qualification, and risk — Why Guarantees make all the difference
   • How are we different:  An introduction to In3’s Completion Assurance [Guarantee] Program™ (describes purpose, objectives and advantages)
3. How to qualify (AKA “Six Essentials”) for the best project finance terms
   • Compare and decide on the best type of guarantee
     • Bank Guarantee / Standby Letter of Credit: article  | BG/SbLC template | essentials
     • Introduction to a Bank-Endorsed Promissory Notes
     • How to obtain and use a Ministry of Finance Sovereign Guarantee
     • Other options include Blocked Funds, advance Payment Guarantee, or several variations on Standby LCs.
   • CAP Requirements to receiving funding through CAP
   • CAP Indicative Terms | Alternative Fund Indicative Terms (no guarantee)| Compare options for up to 100% financing
4. How to succeed at CAP fundraising step-by-step:  Complete Guide 
5. How to secure a CAP funding backer or sponsor
6. See below for Q&A fundamentals, or CAP frequently asked questions
   

PROJECT FINANCE FUNDAMENTALS & DEFINITIONS

What sectors qualify for In3 funding?

Note:  We can finance almost anything (so long as it doesn’t cause environmental harm or have social downsides), but we give preferential treatment to about 30 sectors, from “climate smart” agriculture to renewable energy to waste-to-value

What constitutes a “complete” financial model?

What is a financial “Completion Assurance guarantee”?

This article also explains how our use of guarantees is different than insurance, and also NOT a loan guarantee, because it is typically in place only until the project is built and commissioned, while loan guarantees protect the lender by remaining for the life of the loan.

What is a project “sponsor” or “backer” and why might a project owner/developer need one?  Short answer:  most developers have already put in all available cash to reach the current state of readiness.  Involving another party as backer or “sponsor” does not use their cash to fund the project, but instead aligns both developer and sponsor on the goal of sustainable value creation. CAP Funding Sponsor Facilitation Guide

1. 1-page Tear Sheet for CAP Funding for developers and sponsors
2. 1-page CAP overview (“teaser”) for third party guarantors
3. Landing page for prospective guarantors
4. Ask for our latest PowerPoint materials for introducing your project to potential CAP guarantors.

FIRST TIME APPLICANT MATERIALS:

1. How to Get Started and Pre-Qualify (deliver the “Six Essentials”) | Stepwise Guide to CAP fundraising
2. Short guide to pre-qualification includes securing the Completion Assurance Guarantee (2-page PDF)
3. Help with gathering CAP’s basic information requirements
4. CAP Proposal Builder (all the tools developers need to qualify and expedite funding via CAP, including the above 2-page worksheet)
5. How to create Monthly Draw Schedules and Capital Sources/Uses Statements (PDF)
6. Preparing a financeable project package (checklist)
7. About Project Finance — what is it?
   • Why Developers [should] use Project Finance
   • Differences between Project Finance & Venture Finance

“ADVANCED” SERIES – DEFINITIONS

1. What is an RWA Letter?
2. What are the banking rules that govern “demand guarantees” and how do they protect developers and sponsors?  Learn about the “Uniform Rules for Demand Guarantees” (URDG ICC pub no 758)
3. What Safety Measures or Checkpoints are built into the process, as part of mutual KYC / AML procedures?
4. Leverage/Coverage guidance for SbLC/BGs used to finance projects
5. Protocol of complete CAP Steps and Timeframes “from Inception to Completion” (1-page PDF) for bankers.  Explains how banking-savvy developers can pre-qualify for project financing.

FURTHER READING — SPECIAL TOPICS

1. Background whitepaper (downloadable) on Financial Guarantees used for Project Funding, differences between Bank, Promissory Note and Sovereign Guarantees (4-page PDF)
2. Financial Modeling User’s Guide (instructions for In3’s IFRS/GAAP template)
3. Readiness Assessment:  Readiness And Investment Navigator (RAIN) — our fast and free, educational, 9-question readiness assessment.
4. What is Debt Finance?
5. What is Equity Finance?
6. Project Finance for International Development

VENTURE FINANCE

Top 3 Mistakes to Avoid when presenting to investors
In3 Group’s venture Fundraising & Advisory services
Inspiration:  Vision & Innovation

TRADE FINANCE

About Trade Finance
International Trade Finance Essentials
California’s Trade Promotion Assistance Centers

Impact Investing (PDF article)

More at In3Finance.com/educational